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TRANSCRIPT
Improving Quality & Efficiency
through Supplier Collaboration
Webinar
© 2016 Sparta Systems, Inc.
All attendees are muted upon entry to the event
Please use the Questions option to send questions at any
time during the event.
All attendees will receive a copy of today’s webinar.
Before we begin
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If you experience technical problems, please contact
GoToMeeting Technical Support at 800 263 6317 or +1 805 617 7000.
© 2016 Sparta Systems, Inc.
Today’s Presenters
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Joby George
Product Manager
Sparta Systems
Dirk Dusharme
Editor-in-Chief
Quality Digest
© 2016 Sparta Systems, Inc.
Manufacturing ecosystem expansion
The impact on quality and efficiency
Catch problems early
Build quality into processes
Be proactive
What we’ll discuss
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© 2016 Sparta Systems, Inc.
The manufacturing ecosystem is expanding
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68% of F&B companies
outsource to
contract vendors
51% of supply chain
partners help with
innovation
80% of ingredients to make
drugs for the US market
originate offshore
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Supply chain visibility impacts risk
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22%
13%
43%
1 Global Manufacturing Outlook. KPMG. May 2016.2 Quality: The Missing Link in Your Supply Chain Strategy. Gartner, S Jacobson. January 2015
of companies see quality as an integrated
function of their supply chains2
of manufacturers have ‘complete’ visibility
past Tier 1 suppliers1
of manufacturers have limited or no
visibility into their supply chain1
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The impact of poor quality
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product recall increase
1999-20111+135%
1 Recall Execution Effectiveness Report. Deloitte, GMA, FMI and GS1. May 20102 Reverse Logistics: Driving improved Returns Directly to the Bottom Line. Aberdeen Group. February 2010.
52%recalls due to
supplier/vendor
issues1
of total revenue spent
on returns29-15%
How are supplier-related quality events traditionally
captured?
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© 2016 Sparta Systems, Inc.
Supplier sends email or fax to Manufacturer with basic explanation
and attaches a (non-standard) form with details
Generally, notification is lacking required information
Phone call or email follow-up generally required from Manufacturer
Supplier communicates with Manufacturer
regarding a quality event
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START Wait ForMore Info
Timeline
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Manufacturer reviews submitted information
Manufacturer manually creates record in internal enterprise quality
management system (EQMS) and hopes for no transcription errors
Manufacturer starts their own process and sends a detailed
notification to the Supplier via email or fax
Manufacturer reviews information and initiates
internal process
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Manually Create Record
Timeline
START Wait ForMore Info
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Manufacturer then lets the Supplier know (via fax or email) and the
clock finally starts ticking
The Supplier has 30 days (for example) from this notification to
execute their own quality process
Supplier required to track and close issue within
a defined deadline (e.g. 30 days)
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NotifyPartner
Manually Create Record
Timeline
START Wait ForMore Info
© 2016 Sparta Systems, Inc.
Once the Supplier has completed their investigation, they email or fax
the Manufacturer with results, findings and corrective actions, if
necessary
Unfortunately, these records are rarely complete and typically require
re-work and further activity between the Supplier & Manufacturer
No tracking of the activities, audit trail, or evidence of activities exists
except for the emails and fax
Additional records created and Manufacturer
tracks issue to completion
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Wait forMore Info
NotifyPartner
Manually Create Record
Timeline
START Wait ForMore Info
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A request is sent for a report
Multiple systems, including paper-based, need to be referenced to roll
up different metrics around a Supplier
A couple of weeks later, a report (which may be outdated) is delivered
and action can be taken
Manufacturer to run metrics on Supplier
performance
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Wait forReport
FINISHWait forMore Info
NotifyPartner
Manually Create Record
Timeline
START Wait ForMore Info
© 2016 Sparta Systems, Inc.
Supplier
Collaboration
Catch problems
early
Build quality into
processes
Be proactive
Improving Quality & Efficiency through
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Identifying quality issues early
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Issue Resolution
Cost
Supplier
Network
Corporate
Planning & Design
Manufacturing
Facilities
Distribution
Centers
Consumers
1X 10X 100X 1000X…
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Notify Suppliers/Manufacturers when issues occur
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Notify Suppliers/Manufacturers when issues occur
© 2016 Sparta Systems, Inc.
Ensure quality visibility, traceability, and accountability
Speed event identification to resolution, avoiding costly delays, rework
& product waste
Build quality into processes
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Wait forReport
FINISHWait forMore Info
NotifyPartner
Manually Create Record
Traditional Timeline
START Wait ForMore Info
FINISH
Collaborative Timeline
START
X X X X X
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Support supplier collaboration through automation
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Measure & maintain quality issues, providing standard, consistent
dashboards & reports
Gain insights by analyzing supplier performance history and identify
trends.
Increase compliance of quality agreement, increasing utilization & top
line growth
Be proactive
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Insights for both manufacturer and suppliers
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Insights for both manufacturer and suppliers
© 2016 Sparta Systems, Inc.
Effective supplier quality management through
collaboration
Visibility - Identify issues early before they become costly quality incidents
Traceability - Understand the root cause and source of quality issues in your supply chain
Accountability - Ensure supply chain partners understand issues and resolution requirements in a timely manner
Profitability - Mitigate quality related financial risk and improve supply chain efficiency
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Thank You
www.spartasystems.com